This document discusses human resources management (HRM) in organizations. It covers several key points:
1) HRM involves acquiring the right people for an organization, developing their skills, and motivating them to contribute to the organization's goals.
2) Operative HRM functions include employment (recruiting, selecting, placing staff), development (training, career planning), compensation, and employee relations.
3) The objectives of HRM are to create a skilled and motivated workforce to achieve organizational goals, establish sound employee relations, and satisfy both individual employee and societal needs.
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1.
2.
3. Information technology (IT) – a
wonderful creation of man-brought
significant shifts in our day to day life.
Indian software professionals made
significant strides in the information
technology industry of USA. Employees
of Rourkela Steel Plant turned the loss-
making unit into a profit making
company.
4. Similarly, employees of TISCO, acquired
core competencies for their company
which was affected by dumping of steel
from China. Most of the public sector
companies like Hindustan Machine Tools
Ltd. (HMT), and Hindustan Cables Ltd.,
(HCL) became sick. Thus, the people
make or man an organization.
5. Every company or organization is deeply
interested in having an answer to this question.
The answer to this question centered around the
following areas:
Getting the people who can make an
organization.
Enabling those people to acquire required
capabilities to make a successful organization.
Motivating them to contribute their resources
continuously for running the organization
successfully.
We need to know an important concept
i.e., human resources. People with required skills
to make an organization are generally referred to
as human resources.
6. In simple sense, human resources
management means employing people,
developing their resources, utilizing,
maintain and compensating their services in
tune with the job and organizational
requirements with a view to contribute to the
goals of the organization, individual and the
society.
7. Michael J. Jucius defined Personnel Management
as “the field of management which has to do with
planning, organizing, directing and controlling
the functions of procuring, developing,
maintaining and utilising a labour force, such
that the –
Objectives for which the company is established
are attained economically and effectively,
Objectives of all levels of personnel are served to
the highest possible degree, and
Objectives of society are duly considered and
served.”
8. Human Resources Management (HRM) can
be defined as managing
(planning, organizing, directing and
controlling) the functions of
employing, developing and compensating
human resources resulting in the creation and
development of human relations with a view
to contribute proportionately (due to them) to
the organizational, individual and social
goals.
9. Human resources management is concerned with
employees both as individuals and as a group in
attaining goals. It is also concerned with
behavior, emotional and social aspects of
personnel.
It is concerned with the development of human
resources, i.e., knowledge, capability, skills,
potentialities and attaining and achieving
employee goals, including job satisfaction.
Human resources management covers all levels
(low, middle, and top) and categories (unskilled,
skilled, technical, professional, clerical and
managerial) of employees. It covers both
organized and unorganized employees.
10. IT applies to the employees in all types
organizations in the world (industry, trade,
service, commerce, economic, social, religious,
political and government departments). Thus, it
is common in all types of organizations.
Human resources management is a continuous
and never ending process.
It aims at attaining the goals of organization,
individual and society in an integrated approach.
Organization goals may include survival, growth
and development in addition to profitability,
productivity, innovation, excellence etc.
11. Individual employee-goals consist of job
satisfaction, job security, high salary, attractive
fringe benefits, challenging
works, pride, status, recognition, opportunity for
development etc.
Goals of the society include equal employment
opportunity, protecting the disadvantaged
sections and physically
handicapped, minimization of inequalities in the
distribution of income by minimizing wage
differentials, developing the society in general by
organizing developmental activities etc.
Human resources management is a responsibility
of all line managers and a function of staff
managers in an organization.
12. It is concerned mostly with managing human
resource at work.
Human resources management is the central
sub-system of an organization and its
permeates all types of functional
management, viz., production
management, marketing management and
financial management.
Human resources management aims at
securing unreserved co-operation from all
employees in order to attain predetermined
goals.
13. Further, the analysis shows that most
of the definitions are oriented towards the
functions and objectives of human resources
management. As such, the detailed discussion
about the functions and objectives of HRM
will help us to understand the term HRM
more clearly and objectively.
14. HRM has unique significance in every organisation
because it makes possible the effective use of human
resources along with material resources. Effective
HRM has a significant value in an organisation in
terms of the following:
It helps in attracting and retaining competent and
capable personnel in the organisation. The planning
function of HRM ensures recruitment/acquisition of
different types of personnel in the short, medium and
long-run.
It helps to identify the best people for available jobs
through recruitment and selection procedure. It also
ensures that they are placed in suitable positions.
Through performance appraisal and training it
enables individuals to develop
skill, knowledge, abilities and attitudes from those
they currently possess.
15. It also motivates personnel to excel in their
work.
It provides maximum opportunity for
personnel development.
It is helpful in achieving organizational goals,
efficiency, and effectiveness.
It helps to maintain a balance between job
seekers in the labour market and available
jobs.
It helps in providing suitable and most
productive employment.
16. It aids to bring about harmonious relations
among different work groups.
It helps to improve employees working skill
and capacity.
It helps to reduce income disparities through
standardization of wages in the organisation.
It aids knowledge creation dissemination,
sharing and utilization in the organisation
called knowledge management.
17. Objectives are pre-determined goals to which
individual or group activity in an organisation is
directed. Objectives of personnel management are
influenced by social objectives, organizational
objectives, functional objectives and individual
objectives. Institutions are instituted to attain
certain specific objectives. The objectives of the
economic institutions are mostly to earn profits,
and that of educational institutions are mostly to
impart education and/or conduct research so on
and so forth. However, the fundamental objective
of any organisation is survival. Organizations are
not just satisfied with this goal. Further, the goal
of most of the organisation is growth and/or
profits.
18. To create and utilize an able and motivated
workforce, to accomplish the basic
organizational goals.
to establish and maintain sound
organizational structure and desirable
working relationships among all the members
of the organization.
to secure the integration of individual and
groups within the organization by co-
ordination of the individual and group goals
with those of the organization.
19. to create facilities and opportunities for
individual or group development so as to
match it with the growth of the organisation.
to attain an effective utilization of human
resources in the achievement of
organizational goals.
To identify and satisfy individual and group
needs by providing adequate and equitable
wages, incentives, employee benefits and
social security and measures for challenging
work, prestige, recognition, security, status
etc.
20. To respect the individual, as people are the
greatest asset.
To govern individual and company
relationships with the highest standard of
conduct and integrity.
To be close to the customer through
employees.
To achieve and maintain leadership in people
management.
23. It is a pre-determined course of action.
Planning pertains to formulating strategies of
personnel programmers' and changes in
advance that will contribute to the
organizational goals. In other words, it
involves planning of human resources,
requirements, recruitment, selection, training
etc. It also involves forecasting of personnel
needs, changing values, attitudes and
behavior of employees and their impact on
the organization.
24. An organisation is a means to an end. It is
essential to carry out the determined course of
action. In the words of J.C. Massie, an
organisation is a “Structure and a proves by
which a co-operative group of human beings
allocates its task among its members.” Complex
relationships exist between the specialized
departments and the general departments as
many top managers are seeking the advice of the
personnel manager. Thus, an organisation
establishers relationships among the employees
so that they can collectively contribute to the
attainment of company goals.
25. The next logical function after completing
planning and organizing is the execution of the
plan. The basic function of personnel
management at any level is motivating,
commanding, leading and activating people. The
willing and effective co-operation of employees
for the attainment of organizational goals is
possible through proper direction. Tapping the
maximum potentialities of the people is possible
through motivation and command. Co-
ordination deals with the task of blending efforts
in order to ensure successful attainment of an
objective. The personnel manager has to co-
ordinate various managers at different levels as
far as personnel functions are concerned.
26. After planning, organizing and directing various
activities of personnel management, the
performance is to be verified in order to know that
the personnel functions are performed in conformity
with the plans and directions of an organisation.
Controlling also involves checking, verifying and
comparing of the actual with the
plans, identification of deviations if any and
correcting of identified deviations. Thus, action and
operation are adjusted to pre-determined plans and
standards through control. Auditing training
programmes, analyzing labour turnover
records, directing morale surveys, conducting
separate interviews are some of the means for
controlling the personnel management function and
making it effective.
27. The operative functions of human resources
management are related to specific activities of
personnel management viz., employment,
development, compensation and relations. All
these functions are interacted with managerial
functions. Further, these functions are to be
performed in conjunction with management
functions.
Employment.
Human Resource Development.
Compensation.
Human Relations.
Industrial Relations.
28. It is first operative function of Human
Resources Management (HRM). Employment
is concerned with securing and employing the
people possessing the required kind and level
of human resources necessary to achieve the
organizational objectives. It covers functions
such as job analysis, human resources
planning, recruitment, selection, placement,
induction and internal mobility.
29. It is the process of study and collection of
information relating to the operations and
responsibilities of a specific job. It includes:
Collection of data, information, facts and ideas
relating to various aspects of jobs including men,
machines and materials.
Preparation of job description, job specifications,
job requirements and employee specifications
which will help in identifying the nature, levels
and quantum of human resources.
Providing the guides, plans and basis for job
design and for all operative functions of HRM.
30. It is a process for determination and assuring that the
organisation will have an adequate number of qualified
persons, available at proper times, performing jobs which
would meet the needs of the organisation and which
would provide satisfaction for the individuals involved.
It involves:
Estimation of present and future requirements and supply
of human resources based on objectives and long range
plans of the organisation.
Calculation of net human resources requirements based
on present inventory of human resources.
Taking steps to mould, change and develop the strength
of existing employees in the organisation so as to meet the
future human resources requirements.
Preparation of action programmes to get the rest of human
resources from outside the organisation and to develop the
human resources in terms of existing employees.
31. It is the process of searching for prospective
employees and stimulating them to apply for
jobs in an organisation. It deals with:
Identification of existing sources of
applicants and developing them.
Creation/identification of new sources of
applicants.
Stimulating the candidates to apply for jobs
in the organisation.
Striking a balance between internal and
external sources.
32. It is the process of ascertaining the
qualifications, experiences, skills, knowledge
etc., of an applicant with a view to appraising
his/her suitability to a job. This function
includes:
Framing and developing application blanks.
Creating and developing valid and reliable
testing techniques.
Formulating interviewing techniques.
Checking of references.
Setting up a medical examination policy and
procedure.
Line manager’s decision.
Sending letters of appointment and rejection.
Employing the selected candidates who report for
duty.
33. It is the process of assigning the selected
candidate with the most suitable job in terms
of job requirements. It is matching of
employees specifications with job
requirements. This function includes:
Counseling the functional managers
regarding placement.
Conducting follow-up study, appraising
employee performance in order to determine
employee adjustment with the job.
Correcting misplacements, if any.
34. Induction and orientation are the techniques by
which a new employee is rehabilitated in the
changed surrounding and introduced to the
practices, policies, purposes and people etc., of the
organisation.
Acquaint the employee with the company
philosophy, objectives, policies, career planning
and development, opportunities, product, market
share, social and community standing, company
history, culture etc.
Introduce the employee to the people with whom
has to work such as peers, supervisors and
subordinates.
Mould the employee attitude by orienting him to
the new working and social environment.
35. It is the process of improving, moulding and
changing the skills, knowledge, creative
ability, aptitude, attitude, values,
commitment etc., based on present and future
job and organizational requirements. Thus
functions includes:
36. It is the systematic evaluation of individuals
with respect to their performance on the job
and their potential for development. It
includes:
Developing policies, procedures and
techniques.
Helping the functional managers.
Reviewing of reports and consolidation of
reports.
Evaluating the effectiveness of various
programmes.
37. It is the process of imparting to the employees
technical and operating skills and knowledge.
It includes:
Identification of training needs of the
individuals and the company.
Developing suitable training programmes.
Helping and advising line management in the
conduct of training programmes.
Imparting of requisite job skills and
knowledge to employees.
Evaluating the effectiveness of training
programmes.
38. It is the proves of designing and conducting
suitable executive development programmes so
as to develop the managerial and human
relations skill of employees. It includes:
Identification of the areas in which management
development is needed.
Conducting development programmes.
Motivating the executives.
Designing special development programmes for
promotions.
Using the services of specialists, and/or utilising
of the institutional executive development
programmes.
Evaluating the effectiveness of executive
development programmes.
39. It is the planning of one’s career and
implementation of career plans by means of
education, training, job search and
acquisition of work experiences. It includes
internal and external mobility.
40. It includes vertical and horizontal movement
of an employee within an organization. It
consists of transfer, promotion and demotion.
41. It is the process of placing employees in the
same level jobs where they can be utilized
more effectively in consistence with their
potentialities and needs of the employees and
the organisation. It also deals with:
Developing transfer policies and procedures.
Guiding employees and line management on
transfers.
Evaluating the execution of transfer policies
and procedures.
42. It deals with upward reassignment given to an
employee in the organisation to occupy higher
position which commands better status and/or
pay keeping in view the human resources of the
employees and the job requirements.
This function covers the formulating of
equitable, fair and consistent promotion policies
and procedures.
Advising line management and employees on
matters relating to promotions.
Evaluating the execution of promotion policies
and procedures.
43. It deals with downward reassignment to an
employee in the organisation.
Develop equitable, fair and consistent
demotion policies and procedures.
Advising line managers on matters relating to
demotions.
Oversee the implementations of demotion
policies and procedures.
44. Employers prefer to retain more talented
employees while they retrench less talented
employees. Employers modify existing
human resource strategies and craft new
strategies in order to pay more salaries,
provide more benefits and create high quality
of work life to retain the best employees.
45. Change implies the creation of imbalances in
the existent pattern or situation. Organisation
development is a planned process designed to
improve organizational effectiveness and
health through modifications in individual
and group behavior, culture and systems of
the organisation using knowledge and
technology of applied behavior sciences.
46. It is the process of providing adequate,
equitable and fair remuneration to the
employees. It includes job evaluation, wage
and salary administration, incentives, bonus,
fringe benefits, social security measures etc.
47. It is the process of determining relative worth
of jobs.
Select suitable job evaluation techniques.
Classify jobs into various categories.
Determining relative value of jobs in various
categories.
48. This is the process of developing and operating
a suitable wage and salary programme. It
covers:
Conducting wage and salary survey.
Determining wage and salary rates based on
various factors.
Administering wage and salary programmes
Evaluating its effectiveness.
49. It is the process of formulating, administering
and reviewing the schemes of financial
incentives in addition to regular payment of
wages and salary. It includes:
Formulating incentive payment schemes.
Helping functional managers on the
operation.
Review them periodically to evaluate
effectiveness.
50. It includes payment of statutory bonus
according to the Payment of Bonus Act, 1965
and its latest amendments.
51. These are the various benefits at the fringe of the
wage. Management provides these benefits to
motivate the employees and to meet their life’s
contingencies. These benefits include:
Disablement benefit
Housing facilities
Educational facilities to employees and children
Canteen facilities
Recreational facilities
Conveyance facilities
Credit facilities
Legal clinics
Medical, maternity and welfare facilities
Company stores.
52. Management provide social security to their
employees in addition to the fringe benefits.
These measures include:
Workmen’s compensation to those workers
(or their dependents) who involve in
accidents.
Maternity benefits to women employees.
Sickness benefits and medical benefits.
Disablement benefits/allowance
Dependent benefits
53. Practicing various human resources policies and
programmes like employment, development and
compensation and interaction among employees
create a sense of relationship between the
individual worker and management, among
workers and trade unions and the management.
It is the process of interaction among human
beings. Human relations is an area of
management in integrating people into work
situations in a way that motivates them to work
together productively, co-operatively and with
economic, psychological and social satisfaction.
54. Industrial relations refers to the study of
relations among
employees, employer, government and trade
unions, Industrial relations include:
Indian labour market
Trade unionism
Collective bargaining
Industrial conflicts
Worker’s participation in management and
Quality circles.
55. Human Resources Management has been
advancing at a fast rate. The recent trends in
HRM include:
Quality of work life
Total quality in human resources
HR accounting, audit and research and
Recent techniques of HRM